What coverage gaps should I watch for when bundling?

Review policies carefully as bundling shouldn't compromise necessary coverage levels for either policy.

When bundling your home and auto insurance, it’s important to ensure that the coverage levels meet your needs and do not decrease in value or effectiveness due to the bundling discount. While bundling can often save you money, sometimes it inspires a quick glance over the details and potential reduction in coverages. Make sure that your essential protections like home structure coverage, personal property coverage, liability coverage, collision and comprehensive coverages for your vehicle, and any specific endorsements remain intact. It's easy to get swept up in the discount and overlook the fine print, so look especially for reduction in personal property limits, increased deductibles, or any changes in policy terms that might leave you exposed should an unfortunate event occur.

Imagine Sarah, who recently decided to bundle her home and auto insurance to take advantage of the discounted rates. Initially, she thought all her coverages remained the same, but later discovered that the liability coverage on her homeowners policy had been reduced, and the deductible on her car insurance had been raised to achieve the lower premium. Unfortunately, her dog accidentally damaged a neighbor's property soon after, leading to a claim that could have been fully covered by her old liability coverage. Because of the changes, Sarah found herself paying more out-of-pocket than she anticipated.

Before you bundle, take the time to sit down and go over your policies in detail with your insurance agent. Ask them to explain any changes in simple terms and how they might affect you in various scenarios. If something doesn't make sense or feels off, don’t hesitate to ask for clarification or adjustments to ensure all your coverage needs are met. Remember, a discount is great, but having adequate coverage for peace of mind is even better. Also, regularly revisit your bundled policy to adapt to any life changes and ensure you’re still properly covered.